Brazil c.bank says rate decision not a threat to inflation

Redacción de Reuters

1 MIN. DE LECTURA

BRASILIA, Jan 17 (Reuters) - The Brazilian central bank’s decision to cut interest rates aggressively at its last meeting will help the economy recover without threatening the downward trajectory of inflation toward its target, the bank said in the minutes from that meeting released on Tuesday.

The bank said the approval of more austerity reforms in Congress was needed to maintain the disinflationary process that allowed policymakers to reduce the bank’s benchmark Selic rate by 75 basis points to 13 percent last week. (Reporting by Silvio Cascione and Alonso Soto; Editing by Dominic Evans)